The risk of low interest rates: (10/02/2015)
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
xiao fang xu
:
bubbles are everywhere.
and regarding stock we can use this words:
“Stock prices have reached what looks like a permanently high plateau.
Roger Montgomery
:
“”Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months.”
– Irving Fisher, Ph.D. in economics, Oct. 17, 1929
A week before the Great Crash and the start of the Great Depression!
Yavuz Atasoy
:
Roger, do you think there is a takeover risk for CGF? That was suggested in one other financial newsletter I follow. If there is then who the bidder(s) might be?
Yavuz
Roger Montgomery
:
Hi Yavuz, We haven’t contemplated this in our analysis. At apprx $3.4B there wouldn’t be many locally who could.
John Emmi
:
In terms of a potential CGF takeover, I would have thought the major banks would be looking closely. Or are there issues on competition grounds? I don’t think CGF is large enough for there to be any concerns.
There shouldn’t be any reduction in their beloved ‘EPS’ as CGF are cheap compared to the majors. You would expect CGF to grow faster than the banks existing funds management ops.
Roger Montgomery
:
We haven’t bought in anticipation of a takeover. That’s not our investment style. We agree that they do look cheap.
Kelvin Ng
:
Thanks Roger. That’s really helpful. I think that overall globally the bubble is in the bond markets, not in the stock markets.
Kelvin